Gross written premiums in Kuwait’s insurance market fell in the fiscal year ended 31 March 2026 (FY2026), with the decline attributed largely to the health insurance business, according to the Insurance Regulatory Unit’s latest Annual Report.
Total direct premiums written by insurance companies in Kuwait reached KWD543m ($1.8bn) in FY2026, representing an 11.8% decline compared with FY2025.
The IRU attributed the market-wide decrease in total premiums mainly to the cancellation of the government’s Afia health insurance scheme. The termination of the plan led to health insurance premiums plunging by over 40% year on year to KWD165m in FY2026. Despite the sharp drop in premium revenue, the health sector’s total sum insured actually grew by 31%.
General lines driving growth
While the health and life segments faltered, motor third-party liability (TPL) insurance premiums registered a 26% increase, the highest among all branches, reaching KWD53m in FY2026 compared with KWD42m in the previous year. This branch contributed about 10% of the insurance market’s total premium income.
Comprehensive motor business accounted for around 19% of the market as it reached KWD102m in FY2026 from KWD96m in FY2025, representing a 6% increase. Fire insurance business grew by 22% to reach KWD60m, commanding an 11% market share.
Group life insurance business for the same period reached KWD58m compared with KWD57m, showing a 1.4% increase. Individual life insurance business witnessed a setback of 17% as it declined to KWD8.5m from KWD10.3m.
Paid claims
Total paid claims plunged by 26% to KWD308m in FY2026 compared with KWD417m in the previous fiscal year. Paid individual life insurance claims recorded the sharpest decline, falling to KWD361,000 in FY2026 from KWD1.6m in FY2025, followed by health insurance where claims plummeted by 49% to KWD135m.
Looking forward, the IRU said that underlying market activity continues to be shaped by broader economic expansion, rising insurance awareness, ongoing national infrastructure development and intense price competition. M